Foxconn Electronics is reportedly facing a shortage of both labor and materials at its plants in Chengdu, China.
Apple is still catching up with the demand for the iPad 2. Online orders from the Apple Store still take 1-2 weeks to ship. Digitimes reports today that Apple manufacturing partner Foxconn has issues securing labor and materials in one of their plants in China. This could lead to supply shortages of the iPad 2 and iPhone 4 in the second quarter according to upstream component makers.
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In another report today, Digitimes sees still component supply issues for tablets and smartphones because of the Japanese earthquake that could hit home in June. What this all means is that the supply for the iPad 2 will still be tight way into summer. Apple i supposedly targeting to ship 40 million iPads this year. I assume that Apple needs to do most of that in the 4th quarter of 2011.